The benchmark index of the Nepal Stock Exchange (NEPSE) declined sharply on Tuesday after the market had closed early a day earlier due to a circuit breaker.
The NEPSE index dropped 32.08 points (1.11%) and closed at 2,843.35 points by the end of the trading session.
On Monday, trading had been halted early after the market triggered the 6 percent circuit breaker, which automatically suspends trading when the market rises sharply.
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Sensitive and Float Index Also Fall
Other market indicators also moved downward.
- The Sensitive Index, which tracks Class “A” companies, fell 0.89 percent.
- The Float Index, which measures actively traded shares, dropped 1.12 percent.
These declines show that selling pressure affected most parts of the market.
Most Sectors End in the Red
Most sector indices ended the day lower.
However, a few sectors managed to post gains:
- Mutual Funds: up 1.34 percent
- Life Insurance: up 0.51 percent
- Non-Life Insurance: up 0.38 percent
Meanwhile, the biggest losses were seen in:
- Trading sector: down 2.12 percent
- Finance sector: down 2.06 percent
Sector-wide declines often indicate cautious sentiment among investors.
Strong Trading Activity
Despite the fall in the index, trading activity remained strong.
According to NEPSE data:
- Total turnover: Rs 21.50 billion
- Shares traded: 52.71 million units
- Companies traded: 329
- Total transactions: 205,611
By the end of the day, the total market capitalisation of the stock market stood at around Rs 4.783 trillion.
Market Breadth
Out of the listed companies traded during the session:
- 78 stocks gained
- 178 stocks declined
- 5 remained unchanged
This shows that the market decline was broad, with most stocks closing lower.
Top Performing Stock
Among individual companies, Reliance Spinning Mills Limited (RSML) was the only stock to hit the upper circuit limit during the trading session.
Upper circuit limits are triggered when a stock rises by the maximum allowed percentage in a single day.
Market Trend
Recent trading sessions show that the Nepali stock market has been volatile, with sharp gains often followed by corrections as investors book profits.
Market analysts say investor sentiment, liquidity conditions, and sector performance continue to influence short-term movements in the NEPSE index.
